The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
KUALA LUMPUR (June 30): The FBM KLCI closed by more than 1% today on investors’ concern about Malaysia’s daily Covid-19 figures and economic outlook. The benchmark index closed 15.68 points or 1.01% lower at 1,532.63. Twenty-five of the 30 index-linked counters finished in the red, led by Digi.Com Bhd (down 3.5% or 15 sen at RM4.13), Sime Darby Plantation Bhd (down 3.16% or 13 sen at RM3.98) and Top Glove Corp Bhd (down 3.02% or 13 sen at RM4.17). The market breadth was negative with losers outnumbering gainers by 663 to 307, while 425 counters were unchanged. Total volume stood at 4.65 billion shares worth RM2.67 billion. Remisier Jeffry Azizi Jaafar said investor sentiment was dented by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz’s statement yesterday that the government's official gross domestic product (GDP) forecast of between 6% and 7.5% this year will need to be revised downwards. Going forward, Jeffry said the KLCI’s downside risk remains amid slo...